Existing literature on dealer liquidity provision and inventory management has focused on dealer inventory costs. I … uncover a new inventory benefit channel: dealers strategically build inventory in order to compete for market share. I assess … the relative impact of the inventory benefit and costs on the pricing of dealer liquidity provision and inventory …

Established findings suggest that strategic inventory may alleviate double marginalization and improve the efficiency … of a decentralized distribution channel. In this paper, we examine the effect of strategic inventory in the presence of … more inventory, which intensifies the supply chain competition. Consequently, this competition intensification effect can …